I hope everyone is coming back from a relaxing holiday week. The markets had a quiet week, with volatility reaching a 52-week low. The upcoming week will focus on monitoring bond auctions, Fed speakers, PCE, and the first look at November manufacturing data. Employment reports will be closely watched the following week.
Below is the link to a piece I found interesting from our partners at JP Morgan on technical analysis. Technical analysis involves evaluating financial assets through mathematical calculations and annotated graphs, providing short-term predictions based on indicators like support and resistance lines and options values. While effective for day traders, its limitations become apparent when forecasting the distant future. In contrast, fundamental analysis, which assesses intrinsic value using financial statements and economic data, is more reliable for long-term investors. As the piece illustrates, technical analysis matters for short-term insights, particularly in daily market performance, but understanding its constraints is crucial. Long-term investors generally benefit more from fundamental analysis.